Table of Contents

  • This Survey was prepared in the Economics Department by Petar Vujanovic and Patrice Ollivaud, with the assistance of Agung Raden, under the supervision of Peter Jarrett.Research assistance was provided by Anne Legendre. The Survey was discussed at a meeting of the Economic and Development Review Committee on 14 September 2016.The Survey is published on the responsibility of the Secretary-General of the OECD.

  • Over the past half century Indonesia has made remarkable progress across a broad range of economic and social dimensions. In general, health, education and other social outcomes have never been better, and higher standards of living are being enjoyed by more and more Indonesians. Over the past two decades democracy has taken hold, and bold strides in decentralisation have brought government closer to the people. As a member of the G20, Indonesia is actively engaged in world affairs, and economic integration with regional ASEAN (Association of Southeast Asian Nations) partners is moving ahead. Indonesia has strong growth potential: its population is young, the domestic market is large, it has a rich endowment of natural resources, public debt is low, and its political system is broad-based and stable.

  • This table reviews action taken on recommendations from previous Surveys. Recommendations that are new in this Survey are listed at the end of the relevant chapter.

  • In January 2014 the Indonesian government imposed a ban on the export of unprocessed minerals, including nickel, bauxite, copper and iron. As discussed in the previous Survey, the intention was to force companies to add value domestically before exporting, thereby stimulating activity and employment in the ore processing and smelting sector. The ban was legislated in 2009, but, in the face of strong resistance from industry, the government hesitated to pull the trigger until the end of the term of the previous president. The timing was particularly unfortunate, coinciding with a substantial decline in global demand and the end of the commodity super cycle.